https://www.taxtmi.com/article/detailed?id=10395 Liquidated damages or penalty payments recovered for failure to achieve the Minimum Guarantee Tonnage under a port services agreement are not consideration for a taxable service. The penal clause compensates the port for loss and deters breaches, has no nexus with the taxable service rendered, and thus amounts recovered as compensation for breach do not form part of the taxable value or constitute consideration for service tax purposes. en-us Wed, 11 May 2022 08:37:14 +0530 Wed, 11 May 2022 08:37:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=10395 Liquidated damages or penalty payments recovered for failure to achieve the Minimum Guarantee Tonnage under a port services agreement are not consideration for a taxable service. The penal clause compensates the port for loss and deters breaches, has no nexus with the taxable service rendered, and thus amounts recovered as compensation for breach do not form part of the taxable value or constitute consideration for service tax purposes. Articles Goods and Services Tax - GST Wed, 11 May 2022 08:37:14 +0530 https://www.taxtmi.com/article/detailed?id=10395